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Crypto gambling sites & the bear market


The financial and investment markets are governed by rules established by economic entities and legislation.

This regulation is essential to regulate the market and, simultaneously, ensure that those operating within the market are genuine and no criminal activity is occurring. Laws also safeguard the interest of investors, a crucial factor for a country to acquire foreign investment.

The market also created its technical words, which can sometimes be puzzling for the uninformed. For example, one may have heard the terminology of a Bull market or a Bear market. This terminology does not have  anything to do with the selling and buying of bulls and bears but refers to the state of affairs of the financial market on the day or given period. The primary difference and simple definition between a Bull market and a Bear market are – a bear market is when stocks and bond prices fall, whilst a bull market is when the price of stocks and bonds go up. In a bear market with a constant drop in investment price, there is a low confidence factor, and investors tend to sell off their investments to cut short part of their losses. In contrast, in a bull market, investor confidence is high when prices are going up for a reasonable period. Investors tend to consolidate their current investment and seek further investment opportunities.

Bear markets also affect gambling, with many European casinos not on Gamstop taking measures to have still and offer profitable gambling sites.

The difference between markets

This definition is important for the investor and the reader to understand clearly what is happening in the market and the possibilities it can offer. The market situation can also affect gambling sites, including those platforms which use cryptocurrencies to make financial transactions.

For the past weeks and months, gambling sites using crypto and traders have felt the heat of the effects of the current bear market. Investment portfolios have lost a substantial amount of their value, and Cryptocurrencies have had the same consequences, with most crypto losing almost sixty per cent of their value. This situation is genuinely very nerve-cracking as investors and gambling sites alike are practically helpless to do anything to redress the problem and prevent their portfolios from declining even further. Due to the constant hammering of the bear market, established cryptocurrencies like Terra, Bitcoin and Ethereum have lost a substantial chunk of their overall value. They are still at the sloping end of the predicament. It is estimated that the combined crypto market capital is ten times lower than in 2018.

How is the present crypto bear market compared to previous ones?

In terms of capital and value destruction, the present crypto bear market is much worse than the previous one. In fact, the current market has seen about two trillion dollars vanish in thin air; in the last bear market, almost seven hundred million dollars were eliminated. This precarious situation has gravely hit the two biggest cryptocurrencies, namely Bitcoin and Ethereum. The steep decline in value has affected different parts of the market, in particular crypto exchanges and investors switching from the somewhat risky digital asset structure to more centralized and conventional mediums of investment assets. As a consequence, trading volumes in crypto have drastically decreased, thus having a huge negative impact on cryptocurrency exchange and platforms.

Given the volatility of the crypto market and the unknown of when the bear market will end, many investors are getting very uneasy about their digital portfolios. Cracking signs of investors losing interest in buying digital assets are already showing. The turbulent market conditions may well force most of them out of the digital market and back to the most conventional means of exchange and investment. This will significantly affect gambling sites that have invested heavily in the cryptocurrency market and made the necessary adjustments to cater to their customer’s digital requirements. The new investments, which would have cost substantially, will be for nothing if customers turn their back on digital financing.

How Bull markets affect the economy in a positive way

The previous and constant bull market has brought a streak of prosperity and market expansion within the crypto gambling platforms. This brought added investment in human resources through creating employment opportunities and introducing new and costly software and security arrangements to cater for digital transactions. The bear market’s coldness has prompted some gambling sites to let go of some of their employees, creating social problems for the employees and their families as l as the welfare situation of the country of residence. Unemployment can procure severe consequences for the social fabric of society and the individual and is not necessarily limited to the provision of increased social benefits. It can sometimes lead to mental health issues, which puts further pressure on the family concerned and the health authorities.

The decline in cryptocurrencies coincides with the overall fall in the global financial markets. It is obvious that during the bull market, the normal trading graph increased considerably. The upward trend in trading activities brought with them the paying of fees for each deal made, thus facilitating economic growth. Understandably, the bear market brought fewer crypto transactions leading to the erosion of fee collection. Statistics indicate that from March to May this year, the trading volumes in top crypto platforms were approximately eight hundred billion dollars each month. Whilst the amount seems enormous to the average eye, it is less than half the level for the same period in 2021.

How crypto gambling sites mitigate risks

Several crypto gambling sites and platforms had to take measures to counterbalance the negative effect of the bear market. According to the operators, hard measures were necessary to survive in the current circumstances. Some gambling sites had to lay off employees, blaming the recession and diminishing customer fees. Firing employees can eventually affect platforms as the market will one day turn bullish, and it may be difficult for gambling sites to retake back their once-loyal employees, thus hampering the early return to prosperity. That said, it is expected that if the bear market continues to persist, gambling sites will have no other option but to reduce their workforce further and concentrate on the assets, which can lead to the platform’s survival.





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